Shanghai is taking the lead in the campaign to overhaul China’s state-owned enterprises by encouraging private investment in its companies, The Wall Street Journal reported. After China’s new leadership laid out plans to improve the state sector’s performance in a blueprint last November, Shanghai was the first local government to release its overhaul guidelines. The city has already seen a number of private-equity funds invest in its government-owned companies, spurring revamp moves such as incentive plans for managers. Still, because private partners usually only take minority stakes, their influence on company operations remains limited.